Friday, October 19, 2007
Happy Black Monday
Well maybe it's not so happy if you're like me and picked up Halliburton (HAL) yesterday only to see it plummet today. It's ok though, because I like Halliburton even more at these lower price levels. As we all know, oil prices are sky high but as we don't know, Halliburton has earnings coming out before the opening bell on Monday. I'm a little concerned considering the insider trading going on, but I still consider Halliburton to be a good company with a lot of potential upside.

In case you didn't know, this is the 20th anniversary of the black Monday crash. If you're here wondering why the markets tanked, that's really the only reason which I can find. I'm sure there was some profit taking within some companies, but as a whole, it was mainly out of CNBC causing a free fall. Come Monday, I'm sure you'll see the market recover some on some sectors, particularly computer hardware.

We had a rough day today on Wall Street, but keep in mind that it's never as bad as it looks when things are bad; and it's never as good as it looks when things are good. I hope you didn't exit many of your longer-term positions today (unless they hit a stop - in that case, good for you). But if you liked Halliburton at $41, you should like it even more at these price levels.

Bottom Line: There was no real reason for the markets to take a jab like they did today, with the exception of CNBC talking about recession the entire day. On days where there is no bad news and the markets are in a free fall, it's usually a good time to look at picking up someone of the stronger companies that pulled back due to profit taking as these will be the first to recover when the market does. I expect early next week to see some recovery on short coverings.
Written at 5:26 PM by Wayland.
2 comments
2 Comments:
Dear Visitors,

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2:37 AM  
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2:51 AM  
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